Applicability of Capital Gain on alteration of new house like interiors and furniture

[Venkatesh Dhongadi]

Assessee got a share from Sale proceeds of a open land and during the same year a new house was allotted from a share in Joint venture agreement of another land. Assessee invested the amount received from sale proceeds of a open land in the alteration of new house like interiors and furniture which was allotted though joint venture agreement which is Self-occupied. Now my query is whether the assessee can claim deduction u/s 54F of income tax act, for amount invested in alteration of new house like interiors and furniture on Sale proceeds of a open land?

AI Summary

Section 54F exemption turns on whether house alteration costs are permanent improvements or merely movable furniture.
Investment of net sale consideration from transfer of an open land may qualify for exemption under Section 54F when it is applied to purchase or construction of a residential house within the prescribed time. Expenditure on permanent works integral to making the house habitable, such as civil alterations, fixtures, flooring, electrical works, false ceilings, or fixed modular installations, may be treated as part of the cost of construction or permanent improvement if supported by evidence and timing requirements. Expenditure on movable items like furniture, loose furnishings, appliances, or detachable decorative items ordinarily does not qualify.